In an exclusive interview with Tech Today, Krafton India CEO Sean Hyunil Sohn discussed the company’s dedication to esports, emerging technologies like AI, and the burgeoning Indian gaming market.
The conversation began with Krafton India’s flagship esports initiative, Battlegrounds Mobile India Series (BGIS). Sohn expressed pride in the platform’s role in nurturing new talent, calling BGIS “the esports event for grassroots players to step up the ladder into the national scene, or even the top scene.” He emphasized that the series has provided a much-needed boost for players “to improve and compete.” Sohn also highlighted the success of BGIS in attracting a large audience, noting the “good reception with a good audience turnout.”
Recognizing the importance of AI and VR in the evolving gaming landscape, Sohn discussed Krafton’s approach to integrating these technologies. Although a previous VR version of PUBG PC was scrapped, Sohn emphasized the company’s ongoing commitment to exploring new technologies.
“We used to have small pilot projects, like porting PUBG PC into a VR version. We tried that, but it didn’t provide a smooth experience, so we scrapped it. That was four or five years ago.”
Regarding AI, Sohn identified two key aspects: using generative AI to streamline game development and incorporating AI as a core gameplay element.
“Conceptualization of new gaming ideas has become cheaper and much smoother because of generative AI technology. You don’t really need conceptual artists anymore. You can use DALL-E or diffusion to conceptualize and visualize your gaming ideas.”
Sohn emphasized Krafton’s focus on developing “AI bots within the game to provide a good gaming experience,” which he believes could significantly enhance gameplay. He mentioned an experimental project called “Magic Mike,” describing it as “a very experimental and small game” utilizing voice recognition technology. Players shout specific “magic spells” into their microphones, triggering actions or events in the game.
Sohn also described another experimental project, a mystery story game where players interact with an AI bot to gather information and solve the mystery. He acknowledged the potential of such games to become mainstream, citing the success of their previous battle royale game.
Sohn shared insights into Krafton’s investment plans, revealing upcoming announcements of one or two startup investments. These investments are relatively small, but Krafton is also considering larger acquisition opportunities in more mature companies with revenue between $50 million and $100 million. However, Sohn clarified that “there’s nothing very imminent…no deal close to being closed.”
Discussing the regulatory environment in India, Sohn asserted that “India is not a bad place to be as a gaming company,” despite challenges posed by regulations and unpredictable events. He expressed optimism about the government’s evolving stance on gaming and esports, noting that “the government now understands gaming and esports much better, and they are trying to incentivize the industry’s development.”
Sohn cited increasing discussions about establishing Centers of Excellence for gaming in Mumbai as evidence of the government’s commitment to fostering the industry’s growth.
Addressing the prevalent free-to-play model in gaming, Sohn noted that in-app purchases are central to their revenue strategy, while ads are less lucrative unless a game enjoys substantial traffic. “We will be more focused on in-app purchases for our revenue stream.”
He stressed the importance of setting appropriate price points and value packages for Indian gamers, citing the success of BGMI as an example of their effective monetization strategy.
Regarding global expansion, Sohn emphasized the importance of establishing a strong presence in both Western and Eastern markets. “There is a widely accepted belief that if you want to create truly sizable and new IPs, they need to be popular in the Western market.” He acknowledged the dominance of the Chinese market but highlighted the need for balanced global appeal for long-term sustainability.
Sohn reaffirmed Krafton’s commitment to investing in the Western market through dedicated teams and original IPs tailored for that audience. He pointed to the early popularity of BGMI in the West as a testament to this strategy.
Concluding the interview, Sohn expressed immense optimism about the future of gaming in India. “India is currently number…maybe between number three and five in terms of revenue size. It’s pretty rare for any global gaming company to see that, because the Indian gaming market, in terms of revenue size, is only somewhere between number 10 and 15.”
While acknowledging that the Indian market is still relatively small “given the population,” he emphasized its rapid growth rate of 15-20% annually. Sohn anticipates that India will break into the top 10 gaming markets within the next 3-5 years.
“I am very positive about the future prospects of the Indian market as an important gaming market,” Sohn concluded.
